Biostem Technologies (BSEM) H.C. Wainwright 28th Annual Global Investment Conference summary

Strategic acquisitions and business transformation

• Acquired BioTissue's surgical business in January 2026, adding $29 million in 2025 sales and expanding national hospital sales force and GPO contracts to over 70% of U.S. hospital beds.

• Pivoted from wound care in physician offices to surgical applications, integrating complementary placental-derived allograft products.

• Integration included commercial infrastructure, growing from 15 to 40+ W-2 reps and 30+ agents by year-end, aiming for $750,000–$1 million revenue per rep after ramp-up.

• Hospital revenue now forms the majority of sales, with a focus on urology and women's health as key entry points.

• Even revenue split between Neox and Clarix product lines, with new VENDAJE products added to GPO agreements.

Financial performance and guidance

• Sequential hospital revenue growth led to raised full-year guidance to $26–$29 million.

• Q2 revenue reached $7.9 million, with a $4.6 million adjusted EBITDA loss; breakeven expected post-manufacturing transfer in 2027, which should add 15–20 points to gross margin.

• Ended the quarter with $7 million in cash, actively evaluating non-dilutive financing options to strengthen the balance sheet.

• $10 million contingent payment tied to 510(k) milestones remains, with strategic planning underway for payment.

Operational integration and growth initiatives

• Completed uplisting to Nasdaq, requiring two years of audits and a restatement for new revenue recognition methodology.

• Successful integration of ERP and CRM systems, supporting commercial expansion and operational efficiency.

• Manufacturing transfer from BioTissue to begin in H1 2027, leveraging existing facility capacity and expertise in placental-based tissue products.

• Focused on expanding hospital utilization through GPO contracts and Value Analysis Committee approvals, with timelines varying by facility.